Another great advantage to itemizing your tax return is the IRS mileage rate deduction you can receive from claiming your vehicle mileage. There are many reasons that your mileage may be tax deductible.
Mileage Deduction IRS Rate
You can choose to take the optional IRS standard mileage rates if you are an employee, self-employed, and all other taxpayers if you have vehicle operating costs that qualify for a tax deduction. You cannot claim miles driven from home to work, or from work to home.
You can claim miles driven for business purposes. The miles that count are from the point of arriving at work to the next destination which is for work. Driving from the office to a client’s business. Driving from work to a seminar. These examples give you an idea of how it works.
What Types of Vehicle Mileage Are Tax Deductible?
- Miles Driven for Business
- Medical Travel Mileage
- Moving Travel Mileage
- Servicing for Charitable Organization Mileage
How Much Can I Deduct For Business Vehicle Mileage
- 56.5 Cents Per Mile For Business
- 14 Cents Per Mile For Charitable
- 24 Cents Per Mile For Medical
- 24 Cents Per Mile For Moving
We can expect to see this amount for the IRS mileage tax deduction rate to change from year to year.
Standard Mileage Deduction or Actual Costs
The alternative to claiming the current mileage rate is to deduct the actual costs of operating a vehicle. You must keep accurate records and every receipt. Some examples of actual costs are gas, insurance, car repairs, parking costs, toll road costs, etc.
The IRS standard mileage rate for business, moving, and medical travel comes from an annual study that is done to determine the costs of operating a vehicle, and of the fixed and variable costs of operating a vehicle. The IRS will usually hire an outside company to complete this study.
The Benefits of Filing Your Taxes with Turbo Tax
We recommend that you file your taxes with TurboTax as it will make the tax season so much easier. When filing with TurboTax they will ask you questions regarding your tax situation and will fill out all the IRS Tax Forms for you.
They will let you know which tax deductions and credits are applicable to you so you can keep the maximum amount of your money. You can even use their free tax refund calculator to see how much money you can expect to get back.